Meikles Africa Ld
21 August 2007
MEIKLES AFRICA LIMITED / KINGDOM FINANCIAL HOLDINGS LIMITED / TANGANDA TEA
Further to the Cautionary Statements issued by Meikles Africa Limited (Meikles),
Kingdom Financial Holdings Limited (Kingdom) and Tanganda Tea Company Limited
(Tanganda) on 31 July 2007, pertaining to a 'Scheme of Arrangement' of the
shareholders of Meikles, Kingdom, Tanganda and Cotton Printers (Private)
Limited, shareholders are advised that negotiations are progressing well.
Professional advisors have been appointed to prepare all documentation required
by shareholders and regulatory authorities.
Assuming that all regulatory requirements are met and that negotiations are
successfully concluded, the intention is that the name of the new consolidated
entity will be Kingdom Meikles Africa Limited (KMAL), the Chairman will be John
Moxon, and the Chief Executive Officer will be Nigel Chanakira.
With the need to keep shareholders informed of the rationale for the proposed
consolidation, and in order to minimize speculation by the media, it can be
disclosed that the following objectives will be achieved as a result of a
• The 'Scheme of Arrangement' will provide the critical mass which will
allow KMAL to raise international capital.
• The foreign currency generated by the enlarged Group will be more
effectively used in projects which will include:
• The fulfilment of Tanganda's capital investment/expansion plans.
• The facilitation of Kingdom's regional development.
• The multi-million dollar expansion of Victoria Falls Hotel and the
refashioning of Meikles Hotel.
• With a Group cash positive position, former Tanganda shareholders will be
able to enjoy dividends, payment of which has not been possible for some
• The performance of the enlarged Group will result in efficiencies which
will reduce costs, motivate expansion and enhance profits to a level higher
than the sum of the individual components to all stakeholders.
• The new Group will utilise its enhanced resource base to create synergies
within the Group treasuries and to strengthen customer and supplier
Court applications to sanction the calling of Scheme meetings will shortly be
made. Once court sanctions have been granted, 'Scheme of Arrangement' documents
and appropriate notices will be sent to shareholders.
In light of the above, shareholders are advised to exercise caution when dealing
with their shares. Shareholders will be kept informed on the progress of
BY ORDER OF THE BOARDS
A P LANE-MITCHELL F S MAFUNGA S E MAGOMBEDZE
FOR THE SECRETARIES FOR THE SECRETARIES FOR THE SECRETARIES
MEIKLES AFRICA KINGDOM FINANCIAL TANGANDA TEA
LIMITED HOLDINGS LIMITED COMPANY LIMITED
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